that it would take years before the works could begin to pay for themselves, and that the armor would cost the government more than the company demanded for it. Then the government began to consider the matter more closely, and decided that if the companies already established would furnish the armor at four hundred dollars a ton, it would be much more economical to buy of them than to establish a national armor works. Congress, however, having passed a law that the price paid should not be more than three hundred dollars, it became necessary to prove the impossibility of getting armor at that price before any negotiations at higher rates could be entered into. Fresh advertisements were therefore inserted in the papers and bids were invited for armor for the new ships. Congress having voted that six new ships should be built, steps had to be taken to secure the material for them, as well as to finish those which were already half completed and waiting for their armor. After the advertisements appeared the authorities waited in patience for the bids to come in, but, as in the former instance, not one was received. One person appeared who had a new process by which the requisite article could be manufactured at a profit for one hundred and fifty dollars a ton, but the Navy. Department did not smile on his scheme. It was felt that armor plate was one of the articles which could not be bought satisfactorily at a bargain counter. After waiting a reasonable time the Department authorized Commander Charles O'Neil, chief of the Bureau of Ordnance, to write to the Bethlehem and 1899] Nicaraguan Canal Commission 861 Carnegie Companies and ask if they would be willing to furnish armor for the four monitors and three battleships at four hundred dollars a ton. The two companies immediately replied that they would be willing to do so, and the matter has been settled. Although the price to be paid is one hundred and eighty dollars less than the sum previously charged, the two companies have agreed that the new armor shall be very superior to that originally contracted for. The work on our new ships, which it was feared would be seriously delayed by the trouble over the price of armor, will now proceed without any further hindrance. The conclusion, which has been reached in this matter is one that seems fair all round. The Bethlehem Company would have been in a very bad fix if the trouble had not been adjusted, for it had undertaken the manufacture solely at the instigation of the government, and on the understanding that its works would be kept going with government contracts. When the patronage was withdrawn it seemed as though the Company was being severely dealt with. On the other hand, both the Bethlehem and Carnegie Companies needed a lesson to show them that they could not have a monopoly of the business for long, and that it was not in their power to make enormous profits out of the necessities of the government. The Nicaraguan Canal Commission, which was appointed to go over the ground and discover whether it was possible or not to construct a The Nicaraguan canal over the proposed Nicaragua route, finished its work and handed its Canal Commission. report to the President. This Commission went into the matter very closely, and declared that the conditions are much more favorable for the work than was at first estimated. There being less rock to blast through for the course of the canal than was at first supposed, it was found that the work could be undertaken at a smaller cost than originally estimated. The question of cost was gone into at great length. Two calculations were made, one being that of the majority of the Commissioners, who made the cost at little over one hundred and eighteen million dollars; the other was made by the minority. They insisted that the route could not be laid out for less than one hundred and thirty-four million dollars. Having accepted the report of the Commissioners, the President, in accordance with the decision which had been reached, proceeded to appoint a new Commission to examine the Panama route. As we previously explained, there are tremendous difficulties in the way of either route. That through · Nicaragua is in a measure tied up in consequence of the Clayton-Bulwer treaty, which prevents our government controlling the waterway, and so makes it very unwise for us to spend money over it. The Panama route, on the other hand, though much shorter, is through such difficult country, and requires such enormous rock cuttings, that it has been a deep hole in which money has been put without beneficial |